- Gevo to Host Conference Call Today at 4:30 p.m.
EST/2:30 MST -
Gevo, Inc. (NASDAQ:GEVO) today announced financial results for the
quarter ended September 30, 2017. Key highlights for the third
quarter of 2017 and key subsequent events include:
- On October 9, 2017, Gevo announced that the U.S. Department of
Energy’s (DOE) Chemical Catalysis for Bioenergy Consortium
(ChemCatBio) had awarded funding to Los Alamos National Laboratory,
National Renewable Energy Laboratory, Argonne National Laboratory
and Oak Ridge National Laboratory in support of two collaboration
projects with Gevo. The first project is focused on improving the
energy density of certain Gevo hydrocarbon products, such as its
alcohol-to-jet-fuel (ATJ), to meet product specifications for
tactical missile fuels, which are currently purchased by the U.S.
Department of Defense. The goal of the second project is to
fine-tune the composition of the catalyst used in Gevo’s
proprietary Ethanol-to-Olefins (ETO) process, in order to improve
performance and accelerate scale-up efforts.
- On October 3, 2017, Gevo announced that it expected to supply
its renewable ATJ to the Virgin Australia Group, a leading
Australian airline group. The Virgin Australia Group will be
responsible for coordinating the purchase, supply and blending of
the ATJ into the fuel supply system at Brisbane Airport in
Queensland, Australia. The ATJ is expected to be blended with
traditional jet fuel and supplied on flights departing Brisbane
Airport, including Virgin Australia flights. The Queensland
government is supporting the arrangement as a first step in the
development of a renewable jet fuel production industry in the
state. Queensland is looking to leverage carbohydrate-based
feedstocks, abundant to its local agricultural sector, to support
the build-out of renewable jet fuel production plants in the
future. Gevo is well positioned to play a role in this growth, as
Gevo believes its ATJ is cost advantaged in comparison to other
renewable jet alternatives derived from carbohydrate-based
feedstocks.
- In September 2017, the Board of Directors of the Company
approved voluntarily reductions of the exercise price of certain
Series M Warrants exercisable into 3,945,000 shares of the
Company’s common stock from an exercise price of $2.35 per share of
common stock to $0.60 per share of common stock. In October the
Board of Directors of the Company approved voluntarily reductions
of the exercise price of certain other Series M Warrants
exercisable into 1,185,000 shares of the Company’s common stock
from an exercise price of $2.35 per share of common stock to $0.65
per share of common stock, and Series M Warrants exercisable into
300,000 shares of the Company’s common stock from an exercise price
of $2.35 per share of common stock to $0.60 per share of common
stock. In September and October 2017, all 5,430,000 of these Series
M Warrants were exercised, resulting in proceeds to the Company of
$3.3 million.
- On July 25, 2017, Gevo announced, in conjunction with Praj
Industries Ltd. (“Praj”) that its proprietary isobutanol technology
will now be available for licensing to processors of sugar cane
juice and molasses. This follows on the back of Praj’s development
work, adapting Gevo’s technology to sugar cane and molasses
feedstocks. A Joint Development Agreement and a Development License
Agreement were entered into between Praj and Gevo in November 2015.
The goal of these agreements was for Praj to adapt Gevo’s
isobutanol technology to using non-corn based sugars and
lignocellulose feedstocks. In the first phase of development, Praj
worked with Gevo’s technology using sugar cane and molasses
feedstocks, and worked on developing a process design package to be
offered for commercialization to cane juice and molasses-based
ethanol plants, as licensees of Gevo’s isobutanol technology.
Licensing is expected to be focused on Praj plants located in
India, South America and South East Asia, with initial capacity
targeted to come on-line in the 2019/2020 timeframe.
Commenting on the Company’s most recently completed fiscal
quarter, Dr. Patrick Gruber, Chief Executive Officer of Gevo,
stated, “We are very pleased to have Virgin Australia work with us
on the project to bring renewable ATJ to the Brisbane
airport. This is expected to serve the purpose of working
through any supply chain issues, and should also bring attention to
the tremendous resources and potential of Queensland. The
demand for isobutanol-blended gasoline for the ethanol-free segment
in the Houston market continued to grow, in spite of the
disruptions in logistics caused by the hurricanes. In
Europe, isooctane sales continue to perform well through our
partner, Haltermann Carless (HCS Holding GmbH).”
“We are pleased that the DOE made several grants to their
national laboratories that should benefit our technologies and
products. The Los Alamos project that is looking to convert
our isobutanol-derived hydrocarbons to missile fuels is
particularly interesting, in that these products are high value and
not dependent on being renewable. It is strictly about
performance. They are going to attempt to make our already
higher-than-average energy density jet fuel much higher, to make is
suitable to meet the specifications for various tactical missile
fuels,” added Dr. Gruber.
Outlook for 2017
The following are the operational and financial targets and
milestones that Gevo has established for 2017:
- Restructure Gevo’s balance sheet in a manner that addresses the
debt represented by the outstanding convertible notes and that
allows Gevo to execute on its long-term strategy and business
development plan. Gevo believes that this target was met as a
result of the debt exchange that it concluded with WB Gevo, Ltd. on
June 20, 2017.
- Obtain binding supply contracts for a combination of isobutanol
and related hydrocarbon products equal to at least fifty percent
(50%) of the capacity of the anticipated expanded production
facility that Gevo plans to construct in Luverne, Minnesota (the
“Luverne Facility Expansion”). Based on the current status of
the discussions Gevo is having with potential customers, this
target is not expected to be met during 2017. However, Gevo
believes that this target may be achieved in 2018.
- Gevo plans to achieve a Projected Cash EBITDA Loss of $18.0 -
$20.0 million for the fiscal year ending December 31, 2017.
Gevo believe that it is on track to achieve this
target.3
Strategic Review
Management and the Board of Directors are reviewing the
Company’s strategic and financial options. Management and the
Board of Directors are committed to exploring all strategic and
financial options that are in the best interests of all of the
Company’s stakeholders, including our stockholders, and that are
designed to maximize the value of the Company. Specifically,
management and the Board of Directors are exploring all options to
improve the cash flow profile of the Company’s business, including
the Company’s production facility located in Luverne, Minnesota
(the “Luverne Facility”), to allow the Company sufficient time to
develop the markets and customers for its renewable isobutanol and
related hydrocarbon products.
The Company is currently engaged in discussions with several
interested strategic parties regarding transactions or investments
that would provide capital that would assist it in implementing its
business development plans. There are no assurances that the
Company will successfully complete such transactions or investments
into the Company.
In line with the Company’s desire to improve the cash flow
profile of the Luverne Facility, the Company decided to reduce its
employee base at the Luverne Facility in October 2017 to better
match industry norms in terms of staffing levels necessary to
produce solely ethanol at the plant. The Company does not believe
that this staffing reduction will impact its ability to
periodically return to the co-production of isobutanol and ethanol,
as the Company expects to temporarily shift resources from its
headquarters in Englewood, Colorado to the Luverne Facility to make
up for any shortfalls. The Company expects that this reduction in
force, as well as the focus on ethanol production, will result in a
significant decrease in controllable expenses at the Luverne
Facility.
In addition, the Company is currently reviewing other
initiatives to improve the cash flow profile of the Luverne
Facility and its headquarter operations located in Englewood,
Colorado, which it expects to undertake in the near future.
Operational Summary for the Quarter
In the third quarter of 2017, Gevo produced approximately
100,000 gallons of isobutanol at its Luverne Facility, and
approximately 200,000 gallons thus far in 2017. Consistent with
Gevo’s Luverne Facility production guidance, isobutanol production
this quarter was focused on producing sufficient volumes to provide
enough inventory to support market and customer development efforts
in the future, as well as to continue to optimize Gevo’s technology
and to generate data that is expected to help decrease operating
and capital costs associated with the Luverne Facility Expansion.
Gevo’s current isobutanol production goals are not to maximize
production, but rather to align such production with isobutanol
sales and technology efforts. As a result, during certain periods
of the third quarter of 2017, Gevo only produced ethanol at the
Luverne Facility. Given the Luverne Facility has only one
production line suitable for isobutanol, Gevo’s current isobutanol
production costs are higher than its expected sales price. As a
result, the cash flow profile of the Luverne Facility is improved
by dedicating production to ethanol, rather than co-producing
isobutanol and ethanol.
In addition, the condition of two of the Company’s oldest
fermentation vessels may limit the Company’s ability to co-produce
isobutanol and ethanol (for more information, see the Luverne
Facility Update section in the Company’s Form 10-Q for the Quarter
ended September 30, 2017). The Company does expect to produce any
more isobutanol during 2017. Going forward, the Company
expects its operating strategy will be to focus on the production
of ethanol and to produce limited volumes of isobutanol until the
completion of the Luverne Facility Expansion or until the Company
has repaired or replaced one or both of two older fermentation
vessels.
During the third quarter of 2017, the Company sold limited
quantities of isobutanol and renewable hydrocarbons (ATJ, isooctane
and isooctene). In the quarter, the Company’s isobutanol market
development efforts were focused on gaining market acceptance in
its core gasoline blendstock markets such as marinas and on-road
gasoline fueling stations, while maintaining its targeted selling
price. The Company continued to work with its distribution partners
to make investments to develop end-customer relationships, as well
as to establish value chains to deliver its isobutanol to those
end-customers. The Company believes that gasoline end users such as
boat owners and car owners remain interested in purchasing
isobutanol containing gasoline because of the improved properties
compared to ethanol containing gasoline. The demand for the
Company’s renewable isobutanol, in terms of the number of retail
pumps selling isobutanol-blended finished gasoline in Houston and
other markets, has grown rapidly during 2017. However, given the
low number of pumps that were selling isobutanol-blended gasoline
at the beginning of 2017, limited quantities of isobutanol have
been sold during 2017. The Company expects that sales of the
Company’s isobutanol will increase in 2018 as the markets for
isobutanol-blended finished gasoline further develop.
Gevo’s market development efforts related to its renewable
hydrocarbon products were mainly targeted towards entering into
binding supply agreements to underpin the economics of the Luverne
Facility Expansion that Gevo plans to construct. Gevo has been in
discussions with numerous potential ATJ and isooctane customers to
enter into long term supply agreements, with a goal of signing
contracts representing the majority of the isobutanol production
volumes to be produced at the expanded Luverne Facility.
Currently, Gevo is discussing or negotiating terms for long-term
supply agreements with two large potential customers. There can be
no assurances that these discussions or negotiations will result in
definitive binding agreements.
As Gevo develops markets for its products, there will be a
mismatch in timing between isobutanol production and sales. As a
result, at times Gevo will build isobutanol inventory levels.
At September 30, 2017, Gevo had approximately 350,000 gallons of
isobutanol and approximately 54,000 gallons of renewable
hydrocarbons in inventory.
Also, during the third quarter of 2017, Gevo produced and sold
approximately 4.2 million of ethanol.
Financial Highlights
Revenues for the third quarter of 2017 were $7.7 million
compared with $6.9 million in the same period in 2016. During the
third quarter of 2017, revenues derived at the Luverne Facility
related to ethanol sales and related products were $7.4 million, an
increase of approximately $1.0 million from the same period in
2016. This was primarily a result of higher ethanol and distiller
grain prices and production in the third quarter of 2017 versus the
same period in 2016.
During the third quarter of 2017, hydrocarbon revenues were $0.2
million, down $0.2 million as compared to the same period in 2016.
Gevo’s hydrocarbon revenues are comprised of sales of ATJ,
isooctane and isooctene.
Gevo generated grant and other revenue of $88,000 during the
third quarter of 2017, down less than $0.1 million as compared to
the same period in 2016.
Cost of goods sold was $9.7 million for the three months ended
September 30, 2017, up $0.1 million as compared to the same period
in 2016. Cost of goods sold included approximately $8.2 million
associated with the production of ethanol, isobutanol and related
products and approximately $1.5 million in depreciation
expense.
Gross loss was $2.0 million for the three months ended September
30, 2017, versus $2.7 million in the same quarter in 2016.
Research and development expense increased by $0.1 million
during the three months ended September 30, 2017, compared with the
same period in 2016, due primarily to an increase in
employee-related expenses.
Selling, general and administrative expense decreased by $0.4
million during the three months ended September 30, 2017, compared
with the same period in 2016, due primarily to a decrease in legal
expenses.
Loss from operations in the three months ended September 30,
2017 was $5.1 million, compared with $6.1 million in the same
period in 2016.
Non-GAAP Cash EBITDA Loss in the three months ended September
30, 2017 was $3.4 million, compared with $4.1 million in the same
period in 2016.
Interest expense in the three months ended September 30, 2017
was $0.8 million, down $1.3 million as compared to the same period
in 2016, due to a decrease in outstanding principal balances of our
debt.
During the three months ended September 30, 2017, the Company
incurred a $0.4 million loss on changes in the fair value of the
derivative warrant liability, primarily as a result of the
repricing of a portion of the Series M warrants at a lower strike
price.
During the three months ended September 30, 2017, the estimated
fair value of the 2020 notes embedded derivative liability
decreased, resulting in a non-cash gain of $2.2 million
primarily due to the decrease in the price of the Company’s stock
from June 30, 2017.
The net loss for the three months ended September 30, 2017 was
$4.2 million, compared with $9.8 million during the same period in
2016.
The non-GAAP Adjusted Net Loss for the three months ended
September 30, 2017 was $5.9 million, compared with $8.2 million
during the same period in 2016.
The cash position at September 30, 2017 was $14.8 million and
the total principal face value of the debt outstanding was $17.1
million.
Webcast and Conference Call Information
Hosting today’s conference call at 4:30 p.m. EST (2:30 p.m. MST)
will be Dr. Patrick Gruber, Chief Executive Officer, Mike Willis,
Chief Financial Officer, and Geoff Williams, General Counsel. They
will review Gevo’s financial results and provide an update on
recent corporate highlights.
To participate in the conference call, please dial 1 (888)
771-4371 (inside the U.S.) or 1 (847) 585-4405 (outside the U.S.)
and reference the access code 45648370. A replay of the call and
webcast will be available two hours after the conference call ends
on November 6, 2017. To access the replay, please dial
1-888-843-7419 (inside the US) or 1-630-652-3042 (outside the US)
and reference the access code 45648370#. The archived webcast will
be available in the Investor Relations section of Gevo's website at
www.gevo.com.
About Gevo
Gevo is a renewable technology, chemical products, and next
generation biofuels company. Gevo has developed proprietary
technology that uses a combination of synthetic biology, metabolic
engineering, chemistry and chemical engineering to focus primarily
on the production of isobutanol, as well as related products from
renewable feedstocks. Gevo’s strategy is to commercialize biobased
alternatives to petroleum-based products to allow for the
optimization of fermentation facilities’ assets, with the ultimate
goal of maximizing cash flows from the operation of those assets.
Gevo produces isobutanol, ethanol and high-value animal feed at its
fermentation plant in Luverne, Minnesota. Gevo has also developed
technology to produce hydrocarbon products from renewable alcohols.
Gevo currently operates a biorefinery in Silsbee, Texas, in
collaboration with South Hampton Resources Inc., to produce ATJ,
octane, and ingredients for plastics like polyester. Gevo has a
marquee list of partners including The Coca-Cola Company, Toray
Industries Inc. and Total SA, among others. Gevo is committed to a
sustainable bio-based economy that meets society’s needs for
plentiful food and clean air and water.
Forward-Looking Statements
Certain statements in this press release may constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements relate to a variety of matters, including, without
limitation, statements related to the ability of Gevo to develop
markets for its products, the status of negotiations or discussions
with potential customers, Gevo’s ability to enter into binding
offtake, sales or supply agreements for its products, Gevo’s
ability to produce isobutanol or related hydrocarbon products at
its Luverne Facility, Gevo’s ability to finance, construct and
operate the contemplated expanded Luverne Facility, Gevo’s 2017
operational and financial targets and milestones, Gevo’s cash
operating and financing expectations, the supply agreement with HCS
Holding, Gevo’s financial condition, including liquidity, Gevo’s
ability to secure new customer relationships across core markets,
and other statements that are not purely statements of historical
fact. These forward-looking statements are made on the basis
of the current beliefs, expectations and assumptions of the
management of Gevo and are subject to significant risks and
uncertainty. Investors are cautioned not to place undue reliance on
any such forward-looking statements. All such forward-looking
statements speak only as of the date they are made, and Gevo
undertakes no obligation to update or revise these statements,
whether as a result of new information, future events or otherwise.
Although Gevo believes that the expectations reflected in these
forward-looking statements are reasonable, these statements involve
many risks and uncertainties that may cause actual results to
differ materially from what may be expressed or implied in these
forward-looking statements. For a further discussion of risks and
uncertainties that could cause actual results to differ from those
expressed in these forward-looking statements, as well as risks
relating to the business of Gevo in general, see the risk
disclosures in the Annual Report on Form 10-K of Gevo for the year
ended December 31, 2016, and in subsequent reports on Forms 10-Q
and 8-K and other filings made with the U.S. Securities and
Exchange Commission by Gevo.
Non-GAAP Financial Information
This press release contains financial measures that do not
comply with U.S. generally accepted accounting principles (GAAP),
including non-GAAP Cash EBITDA Loss, non-GAAP Adjusted Net Loss and
non-GAAP Adjusted Net Loss Per Share. Non-GAAP Cash EBITDA Loss
excludes non-cash items such as depreciation and stock-based
compensation. Non-GAAP Adjusted Net Loss and non-GAAP Adjusted Net
Loss Per Share excludes non-cash gains and/or losses recognized in
the quarter due to the changes in the fair value of certain of
Gevo’s financial instruments, such as warrants, convertible debt
and embedded derivatives.
Management believes these measures are useful to supplement its
GAAP financial statements with this non-GAAP information because
management uses such information internally for its operating,
budgeting and financial planning purposes. These non-GAAP financial
measures also facilitate management's internal comparisons to
Gevo’s historical performance as well as comparisons to the
operating results of other companies. In addition, Gevo believes
these non-GAAP financial measures are useful to investors because
they allow for greater transparency into the indicators used by
management as a basis for its financial and operational decision
making. Non-GAAP information is not prepared under a comprehensive
set of accounting rules and therefore, should only be read in
conjunction with financial information reported under U.S. GAAP
when understanding Gevo’s operating performance. A reconciliation
between GAAP and non-GAAP financial information is provided in the
financial statement tables below.
Reverse Stock Split
On December 21, 2016, our Board of Directors approved a reverse
split of our common stock, par value $0.01, at a ratio of
one-for-twenty. This reverse stock split became
effective on January 5, 2017 and, unless otherwise indicated, all
share amounts, per share data, share prices, exercise prices and
conversion rates set forth in this press release and the
accompanying consolidated financial statements have, where
applicable, been adjusted to reflect this reverse stock
split.
________________________1 Adjusted Net Loss Per Share is
calculated by adding back non-cash gains and/or losses recognized
in the quarter due to the changes in the fair value of certain of
our financial instruments, such as warrants, convertible debt and
embedded derivatives; a reconciliation of Adjusted Net Loss Per
Share to GAAP net loss per share is provided in the financial
statement tables following this release. 2 Cash
EBITDA Loss is calculated by adding back depreciation and non-cash
stock compensation to GAAP loss from operations; a reconciliation
of Cash EBITDA Loss to GAAP loss from operations is provided in the
financial statement tables following this release. 3
Projected Cash EBITDA Loss is calculated by adding back
depreciation and non-cash stock compensation to GAAP loss from
operations; a reconciliation of Projected Cash EBITDA Loss to GAAP
loss from operations is provided in the financial statement tables
following this release.
|
Gevo, Inc. |
Condensed Consolidated Statements of Operations
Information |
(Unaudited, in thousands, except share and per share
amounts) |
|
|
Three Months Ended September
30, |
|
Nine Months Ended September 30, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
Revenue and cost of goods sold |
|
|
|
|
|
|
Ethanol
sales and related products, net |
$ |
7,376 |
|
|
$ |
6,363 |
|
|
$ |
19,709 |
|
|
$ |
19,288 |
|
Hydrocarbon revenue |
|
235 |
|
|
|
451 |
|
|
|
984 |
|
|
|
1,462 |
|
Grant and
other revenue |
|
88 |
|
|
|
130 |
|
|
|
163 |
|
|
|
627 |
|
Total revenues |
|
7,699 |
|
|
|
6,944 |
|
|
|
20,856 |
|
|
|
21,377 |
|
|
|
|
|
|
|
|
|
Cost of goods
sold |
|
9,709 |
|
|
|
9,650 |
|
|
|
28,822 |
|
|
|
28,862 |
|
|
|
|
|
|
|
|
|
|
|
Gross
loss |
|
(2,010 |
) |
|
|
(2,706 |
) |
|
|
(7,966 |
) |
|
|
(7,485 |
) |
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
Research
and development expense |
|
1,210 |
|
|
|
1,156 |
|
|
|
4,318 |
|
|
|
3,670 |
|
Selling,
general and administrative expense |
|
1,893 |
|
|
|
2,273 |
|
|
|
6,190 |
|
|
|
6,337 |
|
Total operating
expenses |
|
3,103 |
|
|
|
3,429 |
|
|
|
10,508 |
|
|
|
10,007 |
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(5,113 |
) |
|
|
(6,135 |
) |
|
|
(18,474 |
) |
|
|
(17,492 |
) |
|
|
|
|
|
|
|
|
Other (expense)
income |
|
|
|
|
|
|
|
Interest
expense |
|
(811 |
) |
|
|
(2,100 |
) |
|
|
(2,152 |
) |
|
|
(6,497 |
) |
(Loss) on
exchange of debt |
|
- |
|
|
|
(920 |
) |
|
|
(4,933 |
) |
|
|
(920 |
) |
(Loss)/Gain on extinguishment of warrant liability |
|
- |
|
|
|
5 |
|
|
|
- |
|
|
|
(918 |
) |
(Loss)
from change in fair value of the 2017 Notes |
|
- |
|
|
|
(1,854 |
) |
|
|
(339 |
) |
|
|
(3,629 |
) |
(Loss)/Gain from change in fair value of derivative warrant
liability |
|
(413 |
) |
|
|
1,154 |
|
|
|
5,106 |
|
|
|
(4,171 |
) |
Gain from
change in fair value of 2020 notes embedded derivative |
|
2,184 |
|
|
|
- |
|
|
|
522 |
|
|
|
- |
|
(Loss) on
issuance of equity |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,519 |
) |
Other
income / (expense) |
|
- |
|
|
|
1 |
|
|
|
26 |
|
|
|
207 |
|
Total
other expense, net |
|
960 |
|
|
|
(3,714 |
) |
|
|
(1,770 |
) |
|
|
(17,447 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
(4,153 |
) |
|
|
(9,849 |
) |
|
|
(20,244 |
) |
|
|
(34,939 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
per share - basic and diluted |
$ |
(0.25 |
) |
|
$ |
(2.04 |
) |
|
$ |
(1.40 |
) |
|
$ |
(12.41 |
) |
Weighted-average number of common shares outstanding - basic
and diluted |
|
16,508,158 |
|
|
|
4,837,698 |
|
|
|
14,506,448 |
|
|
|
2,814,266 |
|
|
|
|
|
|
|
|
|
|
Gevo, Inc. |
Condensed Consolidated Balance Sheet
Information |
(Unaudited, in thousands) |
|
|
|
|
|
September 30, |
|
December
31, |
|
2017 |
|
2016 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
14,764 |
|
$ |
27,888 |
Accounts
receivable |
|
1,243.0 |
|
|
1,122.0 |
Inventories |
|
4,331.0 |
|
|
3,458.0 |
Prepaid
expenses and other current assets |
$ |
828 |
|
$ |
850 |
Total
current assets |
|
21,166 |
|
|
33,318 |
|
|
|
|
Property,
plant and equipment, net |
|
71,917 |
|
|
75,592 |
Restricted Deposits |
|
- |
|
|
2,611 |
Deposits
and other assets |
|
803 |
|
|
803 |
Total
assets |
$ |
93,886 |
|
$ |
112,324 |
|
|
|
|
Liabilities |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable, accrued liabilities and other current liabilities |
$ |
5,129 |
|
$ |
6,193 |
2017
Notes recorded at fair value |
|
- |
|
|
25,769 |
2020
Notes embedded derivative liability |
|
6,453 |
|
|
- |
Derivative warrant liability |
|
2,139 |
|
|
2,698 |
Total
current liabilities |
|
13,721 |
|
|
34,660 |
|
|
|
|
2020
Notes, net |
|
13,108 |
|
|
- |
2022
Notes, net |
|
515 |
|
|
8,221 |
Other
long-term liabilities |
|
142 |
|
|
179 |
Total
liabilities |
|
27,486 |
|
|
43,060 |
|
|
|
|
Total stockholders’ equity |
|
66,400 |
|
|
69,264 |
Total
liabilities and stockholders' equity |
$ |
93,886 |
|
$ |
112,324 |
|
|
Gevo, Inc. |
Condensed Consolidated Cash Flow Information |
(Unaudited, in thousands) |
|
|
Nine Months Ended September 30, |
|
|
2017 |
|
|
|
2016 |
|
Operating
Activities |
|
|
|
Net loss |
$ |
(20,244 |
) |
|
$ |
(34,939 |
) |
Adjustments to
reconcile net loss to net cash used in operating activities: |
|
|
|
Loss/(Gain) from change in fair value of derivative warrant
liability |
|
(5,497 |
) |
|
|
4,171 |
|
(Gain)
from change in fair value of 2020 embedded derivative |
|
(522 |
) |
|
|
- |
|
Loss from
the change in fair value of the 2017 notes |
|
339 |
|
|
|
3,629 |
|
Loss on
exchange of debt |
|
4,933 |
|
|
|
920 |
|
Loss/(Gain) on extinguishment of warrant liability |
|
392 |
|
|
|
918 |
|
Loss on
issuance of equity |
|
- |
|
|
|
1,519 |
|
Stock-based compensation |
|
323 |
|
|
|
812 |
|
Depreciation and amortization |
|
4,994 |
|
|
|
5,038 |
|
Non-cash
interest expense |
|
579 |
|
|
|
3,339 |
|
Changes
in operating assets and liabilities: |
|
- |
|
|
|
- |
|
Accounts
receivable |
|
(121 |
) |
|
|
312 |
|
Inventories |
|
(873 |
) |
|
|
284 |
|
Prepaid
expenses and other current assets |
|
22 |
|
|
|
(113 |
) |
Accounts
payable, accrued expenses, and long-term liabilities |
|
(766 |
) |
|
|
(2,095 |
) |
Net cash
used in operating activities |
|
(16,441 |
) |
|
|
(16,205 |
) |
|
|
|
|
Investing
Activities |
|
|
|
Acquisitions of
property, plant and equipment |
|
(1,682 |
) |
|
|
(5,520 |
) |
Net cash
used in investing activities |
|
(1,682 |
) |
|
|
(5,520 |
) |
|
|
|
|
Financing
Activities |
|
|
|
Payments on secured debt |
|
(9,791 |
) |
|
|
(504 |
) |
Debt and equity offering costs |
|
(1,071 |
) |
|
|
(3,295 |
) |
Proceeds from issuance of common stock and common stock
warrants |
|
11,044 |
|
|
|
28,661 |
|
Proceeds from the exercise of warrants |
|
2,206 |
|
|
|
10,895 |
|
|
|
2,611 |
|
|
|
- |
|
Net cash
provided by financing activities |
|
4,999 |
|
|
|
35,757 |
|
|
|
|
|
Net (decrease)/increase
in cash and cash equivalents |
|
(13,124 |
) |
|
|
14,032 |
|
|
|
|
|
Cash and cash
equivalents |
|
|
|
Beginning
of period |
|
27,888 |
|
|
|
17,031 |
|
End of
period |
$ |
14,764 |
|
|
$ |
31,063 |
|
|
|
Gevo, Inc. |
Reconciliation of GAAP to Non-GAAP Financial
Information |
(Unaudited, in thousands) |
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September
30, |
Non-GAAP Cash
EBITDA: |
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
Gevo
Development, LLC / Agri-Energy, LLC |
|
|
|
|
|
|
Loss from
operations |
$ |
(2,552 |
) |
|
$ |
(3,403 |
) |
|
$ |
(9,756 |
) |
|
$ |
(9,896 |
) |
Depreciation and amortization |
|
1,542 |
|
|
|
1,503 |
|
|
|
4,619 |
|
|
|
4,450 |
|
Non-cash
stock-based compensation |
|
2 |
|
|
|
5 |
|
|
|
5 |
|
|
|
10 |
|
Non-GAAP cash
EBITDA |
$ |
(1,008 |
) |
|
$ |
(1,895 |
) |
|
$ |
(5,132 |
) |
|
$ |
(5,436 |
) |
|
|
|
|
|
|
|
|
Gevo, Inc. |
|
|
|
|
|
|
|
Loss from
operations |
$ |
(2,561 |
) |
|
$ |
(2,732 |
) |
|
$ |
(8,718 |
) |
|
$ |
(7,596 |
) |
Depreciation and amortization |
|
111 |
|
|
|
255 |
|
|
|
375 |
|
|
|
588 |
|
Non-cash
stock-based compensation |
|
98 |
|
|
|
265 |
|
|
|
318 |
|
|
|
802 |
|
Non-GAAP cash
EBITDA |
$ |
(2,352 |
) |
|
$ |
(2,212 |
) |
|
$ |
(8,025 |
) |
|
$ |
(6,206 |
) |
|
|
|
|
|
|
|
|
Gevo Consolidated |
|
|
|
|
|
|
|
Loss from
operations |
$ |
(5,113 |
) |
|
$ |
(6,135 |
) |
|
$ |
(18,474 |
) |
|
$ |
(17,492 |
) |
Depreciation and amortization |
|
1,653 |
|
|
|
1,758 |
|
|
|
4,994 |
|
|
|
5,038 |
|
Non-cash
stock-based compensation |
|
100 |
|
|
|
270 |
|
|
|
323 |
|
|
|
812 |
|
Non-GAAP cash
EBITDA |
$ |
(3,360 |
) |
|
$ |
(4,107 |
) |
|
$ |
(13,157 |
) |
|
$ |
(11,642 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
Adjusted Net Loss: |
|
|
|
|
|
|
|
Gevo Consolidated |
|
|
|
|
|
|
|
Net
Loss |
|
(4,153 |
) |
|
|
(9,849 |
) |
|
|
(20,244 |
) |
|
|
(34,939 |
) |
(Loss) on
exchange of debt |
|
- |
|
|
|
(920 |
) |
|
|
(4,933 |
) |
- |
|
(920 |
) |
(Loss) on
extinguishment of warrant liability |
|
- |
|
|
|
5 |
|
|
|
- |
|
|
|
(918 |
) |
(Loss)
from change in fair value of the 2017 Notes |
|
- |
|
|
|
(1,854 |
) |
|
|
(339 |
) |
|
|
(3,629 |
) |
(Loss)/Gain from change in fair value of derivative warrant
liability |
|
(413 |
) |
|
|
1,154 |
|
|
|
5,106 |
|
|
|
(4,171 |
) |
(Loss)
from change in fair value of 2020 notes embedded derivative |
|
2,184 |
|
|
|
- |
|
|
|
522 |
|
|
|
- |
|
(Loss) on
issuance of equity |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,519 |
) |
Non-GAAP
Net Loss |
$ |
(5,924 |
) |
|
$ |
(8,234 |
) |
|
$ |
(20,600 |
) |
|
$ |
(23,782 |
) |
Weighted-average number
of common shares outstanding - basic and diluted |
|
16,508,158 |
|
|
|
4,837,698 |
|
|
|
14,506,448 |
|
- |
|
2,814,266 |
|
Non-GAAP Adjusted Net
loss per share - basic and diluted |
$ |
(0.36 |
) |
|
$ |
(1.70 |
) |
|
$ |
(1.42 |
) |
|
$ |
(8.45 |
) |
|
|
|
|
|
|
|
|
|
Gevo, Inc. |
Reconciliation of GAAP to Non-GAAP Financial
Information |
(Unaudited, in thousands) |
|
|
Year-Ended |
|
December 31, 2017 |
Projected
Non-GAAP Cash EBITDA Loss |
Estimated Range |
Gevo consolidated |
|
Loss from
operations |
($24,000) - ($28,000) |
Depreciation and amortization |
5,500
- 7,000 |
Non-cash
stock based compensation |
500 - 1,000 |
Non-GAAP cash EBITDA
loss |
($18,000) - ($20,000) |
|
Media ContactDavid RodewaldThe David James
Agency, LLC+1 805-494-9508gevo@davidjamesagency.com
Investor ContactShawn M. SeversonEnergyTech
Investor, LLC+1
415-233-7094gevo@energytechinvestor.com@ShawnEnergyTechwww.energytechinvestor.com
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